Unit III Case Study
Samuel Montanez
Columbia Southern University
In 2008-2009 Harley Davidson Inc. recorded one of the lowest sales in the companies’ 100-year existence. It was in 2009 that Harley (Harley Davidson Inc.), restructured to change its brand starting with its mission statement. Harley transformed its mission statement to read, “We inspire and fulfill dreams around the world through Harley-Davidson motorcycling experience” (Collins, 214). This new motor changes as the strategic management of Harley was being revolutionized. Harley understood that they no longer fulfilled dreams but inspired to do so. The major emphasis in the change in mission statement was “in providing.... services in selected markets” (Collins, 2014).
Harley was on track to expand and conquer new markets throughout the globe. But in 2008 Harley had a check on reality and knew something had to change.
Harley-Davidson was the main supplier of heavyweight motorcycles in the United States and looking to expand globally. While Harley dominated in the United States it lacked resolve in other markets. Harley-Davidsons Financial Services was the key financer of most of the Harley motorcycle sales. When the market began to slump due to the mortgage crises Harley Financial also began to feel the effects. Harley had a high default rate that affected the sales of new bikes. Haley went from being as a product that retained much of its value to a basic motorcycle with reduced value. While the United States suffered in losses Harley announced the layoff of employees.
When Harley decided to venture globally strategist had to consider numerous variable to succeed in various regions. Harley tailored the sales of their motorcycles to fit these specific regions and compete within the region. In Europe, Harley was competing with performance rather than an image that was established. In order to compete Harley engineered and produced the VROD. Which assisted Harley sales within the European market and allowed it to compete with BMW and Ducati. While Harley holds a 10% market share in Europe they hold a 40% market in Australia. Australia like the United States uses the band of freedom and open road to intrigue and promote sales. Europe and Asia present a challenge as consumers along with regulatory government hinder the use of what Harley has built it reputation (heavyweight) but must focus on quality and performance.
While holding true in providing a high quality motorcycle Harley has gone from expanding to perfecting its product. Harley once looked to expand and provide multitudes of cycles around the globe. Harley now holds up to a 4-5 day inventory. The key in Harleys Strategy is “1.) Investing in the H-D brand, 2.) Restructuring and reducing the cost structure, 3.) Obtaining funds fro HDFS,” Collins, 2014). While Harley maintains ease of completing the three objectives to obtain funds tends to be the most problematic.
In order for Harley to maintain its high quality and prestige image Harley understands the need to ensure employees are well taken care of. Harley off sets this need by revamping performance evaluations, and team building objectives. Harley offers employees top rate training and mentors them fro the next level in their career path.
While Harley controls most of their distribution internally it is there internal research and development that continue to benefit them. Harley has always strived to develop the best bike on the market. In having the facility to oversee research and development is key to do so.
Research and development assure that every Harley motorcycle meets Harley’s high standards in performance, and styling and owner customization. From developing its first basic motorcycle to the newest edition of the VROD Harley wants to expand through quality and performance.
Harley’s financial statements are not where they were once before 2008. Profits were lower than was Harley reported in 2006.
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